What a week. There has been some unprecedented instability amongst major home equity lenders during the past few days. Talk of a bailout, stock plunges, and bank failures have topped the headlines.

Now it’s  looking like only a handful of major HELOC lenders will come out of this. The next time you go to take out a home equity line of credit, you may have to choose from five massive lenders rather than twenty or so.

Just recently, MarketWatch reported that Wachovia is in serious negotiations with Wells Fargo. They explain:

“Wachovia Corp. was in advanced discussions over the weekend to sell itself to Wells Fargo & Co.

The Wall Street Journal reported Monday, citing a person familiar with the situation. Wachovia also held talks with Citigroup but by late Sunday Wells Fargo appeared to be the preferred bidder…”

What happens with these banks and the proposed bailout is yet to be seen. However, it is clear that a massive consolidation process is taking place between the nations largest banks.

See Also: 

Who’s to Blame for the Home Equity Crisis?

New WaMu CEO Faces $60 Billion in Home Equity Loans

Tags | bailout, Heloc, home equity line of credit, mortgage crisis, Wachovia, Wells Fargo